Even though the country is yet to formulate regulations for investing in cryptocurrency, there was almost a 20,000% increase (from $200 million to $40 billion) in crypto investments in India in the past year alone! Several people rode the wave and reaped unparalleled returns on their investments.
So, how can you get started? And which is the safest way possible to invest in cryptocurrency in India? Let’s explore
Why Is Crypto Booming in India?
Despite the Indian government’s debatable stance on crypto assets, cryptocurrency investments in India are still increasing. Start-ups like WazirX are even introducing newer concepts like Non-Fungible Tokens (NFTs). What are the reasons behind this uptick?
Low internet costs, rising real estate prices, and increased taxation on metals like Gold and Silver also seemed to have contributed to the paradigm shift of investing in tangible assets.
Moreover, the introduction of cryptocurrency brought an unprecedented degree of latitude for people as young as 18 years of age to invest and grow their portfolios.
Rise of Crypto Exchanges in India
The high inflation rates in India along with the restrictive and non-streamlined modes of investment presented a golden opportunity for visionary entrepreneurs to set up cryptocurrency exchanges in India.
Due to the intrinsic nature of crypto and blockchain technology, entrepreneurs like Nischal Shetty were able to give rise to crypto exchanges that have an intuitive and easy-to-use User Interface (UI). These crypto exchanges also offered almost no annual maintenance charges (AMCs) and a much lower trading fee.
With 24×7 availability, minimal design, and potentially sky-high returns on investment for any individual – crypto exchanges boomed.
The Most Favoured Cryptocurrency
The most favored cryptocurrency, judging from the market cap, is the OG token – Bitcoin (BTC). However, many argue that Ether (ETH), the native token of the Ethereum network could soon replace Bitcoin.
Other popular crypto tokens are:
Polygon (MATIC)
Litecoin (LTC)
Binance Coin (BNB)
Polkadot (DOT)
Cardano (ADA)
Solana (SOL)
CRYPTOCURRENCY MARKET CAP (Approximate)
BTC USD 598 billion
ETH USD 223 billion
MATIC USD 5.6 billion
LTC USD 8.37 billion
BNB USD 48 billion
DOT USD 13 billion
ADA USD 39 billion
SOL USD 7.9 billion
Source: https://coinmarketcap.com/
How to Invest in Crypto on WazirX?
With many cryptocurrency exchanges popping up, it can get overwhelming. One can invest in cryptocurrency without compromising on security because of revolutionary platforms like WazirX.
Founded in 2018 by Nischal Shetty, WazirX is a crypto exchange with a simple and efficient onboarding process at no extra cost.
Later, in November of 2019, Binance, the world’s largest crypto exchange acquired WazirX. This gave rise to the Binance-WazirX advantage. Indians can now worry less and invest in crypto.
A zero-fee cross-platform transfer between WazirX and Binance is possible, thus securing all the cryptocurrency assets and investments.
WazirX also has zero hidden charges. Other fees on the platform are:
0.2% Taker Fee
0.2% Maker Fee
To invest in cryptocurrency with WazirX follow the steps:
1. Visit wazirX and create an account on the website. You can also download the app on your Android or iOS devices to set up your account. Sign-up with your e-mail address and password. You can add a referral code if any. Once done, you will receive a verification mail on your e-mail id. You can start the registration process once verified.
2. Now, you can set the desired security options. WazirX recommends Authenticator App or you can also choose between mobile SMS or have none. WazirX takes strict security measures, protecting users’ data and privacy. After the security measures are in place, WazirX will ask you to fill in details such as country and Type of KYC.
Complete your KYC by filling up details such as name, address, date of birth, Aadhar Card, and PAN. WazirX will send you a message within a few days after verifying your details.
3. Once the setup is complete, you can start trading on the WazirX app. Deposits can be made via UPI or WazirX P2P can be used as well. On the Exchange dashboard, you will see multiple options to purchase BTC, WRX, ETH, and many more. WazirX has an easy-to-use dashboard and navigation features.
4. To buy a cryptocurrency, you will have to deposit funds first. You can transfer from your bank account to your wallet via UPI by clicking on the ‘Funds’ tab. With WazirX, you can get started on your cryptocurrency investing journey with as little as Rs 100!
The bottom line
Blockchain technology and cryptocurrency are disrupting the modern financial infrastructure and governance for the better.
However, due to the lack of regulatory bodies in the DeFi space, individual investors must do their part in researching about DeFi projects and ‘tokenomics’ (economics of a cryptocurrency/crypto token) before investing their money in a highly volatile market.
